House Panel OKs 1099 Rule Repeal

February 17, 2011 ( – The U.S. House Ways and Means committee on Thursday approved two separate pieces of legislation to repeal the Form 1099 reporting provisions enacted in 2010 as part of health care reform.

A committee news release said the panel concluded markup and vote on both H.R. 4, the “Small Business Paperwork Mandate Elimination Act of 2011,” and H.R. 705, the “Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011.”

“The legislation approved by the Committee today is a victory for America’s small businesses, families and individuals,” said Chairman Dave Camp (R-Michigan). “ Congress should make every effort to reduce the heavy burden of paperwork that takes time, energy and resources away from creating jobs.  Families and individuals who do something as common as rent out a room and either replace an appliance at their rental property or pay a lawn service should not have to worry about the added headache of reporting that transaction to the IRS.”

The measure now goes to the House floor for further consideration.

Business groups have argued that the measure is too big of a burden – particularly for small companies.